Finger Points At ‘Price Fixing’ Housebuilders

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Price fixing by a ‘cartel’ of housebuilders could be rife across the UK the Competition & Markets Authority believes. Eight housebuilders are implicated by the Authority which says it suspects illegal information sharing.

The Competition and Markets Authority (CMA) also found that the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes.

Anti-competition

Sarah Cardell, chief executive of the CMA, says: “On 26 February, we opened a new investigation into the suspected sharing of commercially sensitive information by housebuilders which could be influencing the build-out of sites and the prices of new homes. It is important we tackle anti-competitive behaviour if we find it.

“The CMA has therefore launched an investigation under the Competition Act 1998 into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry. The CMA has not reached any conclusions at this stage as to whether or not competition law has been infringed.”

Homeowners ripped off

The findings come as the CMA has published its final report on the housebuilding market in Great Britain. The study also found substantial concerns about estate management charges – with homeowners often facing high and unclear charges for the management of facilities such as roads, drainage and green spaces.

Concerns have been found, too, with the quality of some new housing after the number of owners reporting snagging issues increased over the last 10 years.

More homes

Cardell adds: “Housebuilding in Great Britain needs significant intervention so that enough good quality homes are delivered in the places that people need them.

”Our report – which follows a year-long study – is recommending a streamlining of the planning system and increased consumer protections. If implemented, we would expect to see many more homes built each year.

“We would also expect to see fewer people paying estate management charges on new estates and the quality of new homes to increase. But even then, further action may be required to deliver the number of homes Great Britain needs in the places it needs them.”

Picture: Not enough homes are being built says the Competition & Markets Authority – and housebuilders may be colluding and sharing information illegally.

Article written by Brian Shillibeer
01st March 2024

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